AstraZeneca Acquires Arrow Therapeutics, Cuts 3,000 Jobs

AstraZeneca has entered into an agreement to acquire Arrow Therapeutics Ltd., a UK biotechnology company focused on the discovery and development of anti-viral therapies, for $150 million in cash. The transaction is expected to close early this year.

The acquisition is part of the company’s strategic plan to strengthen its portfolio of anti-infective treatments from external opportunities that complement its internal capabilities in anti-bacterials. The company had previously announced plans to refocus its disease area research with infection and anti-bacterials as key therapy areas.

Arrow Therapeutics anti-viral program includes several different approaches towards Hepatitis C Virus (HCV) and Respiratory Syncytial Virus (RSV). The company has two anti-HCV compounds in Phase I development and its most advanced compound, RSV604, is currently in Phase II development through a partnership with Novartis.

Ken Powell, chief executive officer of Arrow Therapeutics, said, “We are delighted to join AZ, which has a proven track record in successfully enhancing its research capabilities by the acquisition of smaller biotechnology companies. Our scientists are looking forward to working within the AZ research framework. We will be helping to build a complementary anti-viral franchise by utilizing AZ’s resources to realize the full potential of the Arrow Therapeutics programs and to develop a major pipeline of new anti-viral medicines.”

According to the company, its plans are for Arrow Therapeutics to become a hub for anti-viral discovery activities remaining at its present central London site.

Also, according to a company statement made today during its 4Q report, AZ will eliminate 3,000 jobs during the next three years to reduce expenses as “part of an effort to counter generic competition.” The cuts, which will take place mainly in supply chain functions, will result in charges of approximately $500 million.